This document discusses the role of strategic direction in organizational design. It states that strategic direction provides the vision, mission, values and goals that guide an organization's strategies. Organizational design then implements the strategies through its structures, processes and systems. The strategic framework defines how projects support stakeholder objectives. A strategy defines how an organization will achieve its goals, and organizational design reflects how goals and strategies are implemented. Different strategies, like low-cost leadership or differentiation, affect organizational design in different ways such as through centralized authority versus empowered employees.
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The role of strategic direction in organisational design
1. THE ROLE OF STRATEGIC DIRECTION
IN ORGANISATIONAL DESIGN
ASWIN P
RA 1952001020055
2. Organization Design is a process for shaping the way organizations are
structured and run.
It involves many different aspects of life at work, including team formations,
shift patterns, lines of reporting, decision-making procedures,
communication channels, and more
ORGANISATION DESIGN
3.
4. Strategic Direction is a path set out for your organization based on your
vision, mission, core values and the strategies identified to achieve the
goals you and your team determine for your organization.
Strategic direction includes the plans and actions that needs to be put in
place to work toward this vision of the future for the organization. ... The
organizations has to establish their strategic direction and then translate
their vision to every area and process
STRATEGIC DIRECTION IN ORGANISATIONAL DESIGN
5.
6. A strategic framework is a structured method used to define how a project or
initiative supports the key objectives of stakeholders. There are four
components to a strategic framework:
STRATEGIC FRAMEWORK
7.
8. A Framework for Selecting Strategy and Design. A strategy is a plan for interacting
with the competitive environment to achieve organizational goals. Goals define
where the organization wants to go and strategies define how the organization will
get there.
FRAME WORK IN ORGANISATIONAL DESIGN
9. The primary responsibility of top management is to determine an organization’s
goals,
strategy, and design, therein adapting the organization to a changing
environment.
Direction setting begins with an assessment of opportunities and threats in the
environment and an evaluation of internal strengths and weaknesses. Then the
company
can determine its mission, goals and strategies. Organizational design reflects
the way
goals and strategies are implemented. This is the role of organization theory.
Consider
how organization design is affected by the choice of goals and strategy.
The role of strategic direction in organizational design
10. Low Cost Leadership: Mechanistic efficiency to organizational design.
Strong, centralized authority.→ Differentiation: Structure is fluid and
flexible with strong horizontal coordination. Employees are
empowered to take risks.→ Prospector: Similar to differentiation.→
Defender: Efficiency approach like low-cost leadership.→ Analyzer:
Mixed of characteristics, fluid like its strategy.→ Reactor: No direction
or clear approach to design.
EFFECT OF STRATEGIES IN ORGANISATIONAL DESIGN
